(Yicai Global) May 31 -- Germany's largest commercial bank, Deutsche Bank AG [NYSE:DB], confirmed it has reached an agreement with China Development Bank, the country's largest foreign investment and financial cooperation bank, to help finance construction along the One Belt, One Road route.
The first projects are expected to have an initial period of five years with financing of up to USD3 billion, German media reported.
The same day, a Deutsche Bank spokesman confirmed the news with Handelsblatt, a Germany financial newspaper. The agreement will allow the German bank to become one of the first foreign parties to finance the Belt and Road initiative.
Germany was the first European country to support the strategy, and has contributed more than other non-Asian country from the Asian Infrastructure Investment Bank's 57 founding members, Handelsblatt cited Wang Weidong, Minister Counselor of the Economic and Commercial Counselor's Office at the Embassy of the People's Republic of China in Germany, as saying.
"Germany is the biggest economy at both ends of the Silk Road Economic Belt, so the Belt and Road initiative provides a broad space to deepen cooperation between the two countries," he added.
Deutsche Bank is also looking to issue 'panda bonds,' the report added. Panda bonds are yuan bonds issued in China's bond market by institutions legally incorporated outside of the country.